Consider an Income Tax and a Head Tax,the Sizes of Which

question 61

Multiple Choice

Consider an income tax and a head tax,the sizes of which have been set so that the government collects the same amount of money under each tax.Which tax does the consumer prefer?

• A) The consumer is indifferent between the two taxes,since he pays the same amount of money under each tax.
• B) The consumer prefers the head tax,because it does not lower the relative wage as does the income tax.
• C) The consumer prefers the income tax,because it can be avoided by increasing the amount of leisure time consumed.
• D) The consumer may prefer either tax,depending on whether the income tax increases or decreases the number of hours of work at the optimum.

---

Definitions:

Multifactor Authentication

A security system requiring more than one method of authentication from independent categories of credentials to verify the user's identity.

Password/PIN

Security measures used to protect access to devices and accounts, consisting of a secret series of characters (password) or numbers (PIN) known only to the user.

Smart Card

A small ID-size card that can store data, be encrypted, and swiped through and/or interact wirelessly with a smart card reader. Examples of smart cards are identification, medical, credit, and access card.

Spear Phishing

A targeted attempt to steal sensitive information through email by pretending to be a trusted entity, aiming specifically at an individual or organization.